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Transcript of taj group service sector management project
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PRESENTATION OF SERVICE SECTOR MANAGEMENT WITH RELATION TO SPECIAL
STUDIES OF STAR HOTELS
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VSIT – TYBMS - A NAME ROLL NO.
MAHESH KEELI
RAMESH SELVAM
SNEDEN ANTHONY
DOMINIC GOUVEIA
ZARNA GALA
RADHIKA KANOJIA
ROHIT SHIRKES
RAHUL MUNGEKAR
NISHA GUPTA
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Services
“Economic activities between two parties, implying an exchange of value between seller and buyer in the market place”
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OVERVIEW OF SERVICE SECTOR
Service Sector in India today accounts for more than half of India's GDP.
According to data for the financial year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively
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Service Includes
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HOSPITALITY SECTOR
•Guests keep coming based on familiarity, consistency etc•Second oldest profession in the world, one should feel at home•Over 46 touch points divided into three broad processes–Pre-booking–Check in/Check out–Stay•Each touch point has a unique process•Each Process is a rigorous training based people processes•Each process is augmented by a connected technology ecosystem
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HOTEL INDUSTRY
• WHAT IS HOTEL INDUSTRY?“A place Where Travelers Can Pay for Lodging and
Meals and Other Services on a short-term basis.”Objectives of Hotel Industry• Customer Satisfaction• Health• Safety Environment• To Promote Tourism
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STAR RATED HOTELS
5 DELUXE & 5 : LUXURY AT HIGH
PRICE , 27 % GOVT. APPROVED ROOMS
FORMS 30% OF INDUSTRY
BUILT OVER 18000 sq.m AREA
2 & 1 : AROUND TOURIST
SPOT, PREFERRED BY DOMESTIC
TOURIST
4 & 3 : FOR MIDDLE LEVEL
BUSINESS EXECUTIVES/LEISURE
TRAVELLERS
Eg : ITC,TAJ GROUP,
OBEROI GROUP, ITDC
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CRITERIA FOR 5 STAR HOTEL RATING
• THE ENTIRE HOTEL IS SPACIOUS AND LUXURIOUS
• EXQUISITE CUISINES THAT CATER TO TASTE BUDS FROM ALL OVER THE WORLD
• SERVICES ARE MORE, FLAWLESS AND PERSONAL ATTENTION TO THE GUEST’S NEEDS
SOME UNIQUE SERVICES PROVIDED IN THE 5 STAR HOTELS
• BUTLERS
• CHAUFFER DRIVEN LUXURY CARS
• PILLOW MENU
• CUSTOMISED SERVICES IN THE IN-HOUSE SPA AND SALOON
• 42” PLASMA TV, INTERNET, FAX, LAPTOPS ON RENT AND MUCH MORE
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INTRODUCTION TO THE COMPANY VISITED
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TAJ GROUP OF HOTELS
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LOCATION OF TAJ HOTELS
• Rating : Five Star• Address:Apollo Bunder, Colaba, Mumbai (Bombay), Maharashtra, 400
001, India.• Accessibility:Centrally located Apollo Bunder and a few kilometres from
CST station makes the task of finding the easy for the tourists.• Hotel Description:The history of Mumbai and The Taj Mahal Palace are
dramatically intertwined. The hotel is Mumbai’s first harbour landmark (built 21 years before the Gateway of India) and the site of the first licensed bar in the city. A treasure-trove of invaluable memorabilia, there is a story to tell behind every pillar, a landmark deal in every boardroom, and a storied celebration under every awning. Come be a part of the legend.
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OWNER OF TAJ HOTELS
• Taj group of hotels is owned by the TATA sons Group of india, who also own the Indian hotels company established in 1902.
• Mr Ratan tata is the present chairman of the group.• Sir Ratan Naval Tata, KBE, is an Indian businessman who became chairman
of the Tata Group, a Mumbai-based conglomerate. He is a member of a prominent Tata family of Indian industrialists and philanthropists.
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•The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces. •Founded by Jamshetji N. Tata on December16, 1903.• Currently the Taj Hotels Resorts and Palaces comprises 76 hotels, 7 palaces at 52 locations in 12 countries and employ over 13000 people.•Additional 18 hotels are also being operated around the globe. •During fiscal year 2010, the total number of hotels owned or managed by the Company was 76.•The Taj hotels are categorized as luxury, leisure and business hotels.
INTRODUCTION TO TAJ HOTELS
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MARKETING MIX
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PHYSICAL EVIDENCE
PROMOTION
PRODUCT
PEOPLE
PROCESS
PLACE
PRICE
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7P’s of Taj hotels
1.PRODUCT
• Rooms & Suites • Core product is
space • Supplementary
products include travel arrangements, ticketing, airport pick-ups, sightseeing, etc
2. PLACE
• More than 60 hotels in 45 locations across India ,15 in International Locations.
• Vantage locations • Iconic properties
rooted in history and tradition
3. PRICE
• Price on the basis of business , luxury and leisure class.
• Not affordable by all.
• High prices justified as they help Taj retain exclusivity.
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4 . PROMOTION
• Loyalty programs,
clubs, memberships.
• Surprises such as
weekend savers,
value vouchers,.
• Monthly letters to
about upcoming
events.
• Holiday package
promotions at
exhibitions.
5. PHYSICAL EVIDENCE
• Well designed,
spacious lobby.
• Use of artifacts and
antiques.
• Traditional Indian
welcome to guests.
• Combines a heritage
ambience with
modern luxury.
6. PROCESS
• Check-in
• Bell-person carrying
luggage to room
• Butler service
• Food
• Laundry
• Child-care and
baby-sitting
• Currency exchange
• Wake-up call
• Gift-shop, boutique,
florist
• Check out
7. PEOPLE
• Skilled personnel
• Personal Agents
• Technological
persons
• Travel agents
• Butler
• Bell-boys
• Restaurant staff
• House-keeping
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Product
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CORE
BASIC
EXPECTED
AUGMENTED
POTENTIAL
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Products
Room
Restaurant and Bar.
Meeting room and Banquet facility
Amenities
Services
Safe deposit box
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Special services
• courier• Child care• Laundry• Pet• Internet• Travel desk• Babysitting• Wake-up call
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• Barber shop• Boutiques• Currency exchange• In room telephone service• Express check -in and out• Florist• Front desk 24 – hour• Gift shop• Maid service
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Price
22PRICING STRATEGIES
Differential pricing
Demand based
Competition based
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PRICE
• Price on the basis of business , luxury and leisure class.• Not affordable by all.• High prices justified as they help Taj retain exclusivity.
Taj hotel has set its price of the room on the basis of Business, Leisure and
Luxury class.
RatesThe Taj Suite Rs. 8750Executive Suite Rs. 6250
Standard sea view double Rs. 3500
Standard sea view single Rs. 3500
The Taj Lady Rs.8000
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PLACE
Customers visit a hotel to satisfy their needs for food and accommodation.
Hotel distribution is interdependent with other industries that serve travelers and tourists, like the transportation industry, travel agents ,tour operators, state and national tourism organizations, and shopping and entertainment providers.
The location of a hotel should be convenient and accessible to the customers.
The selection of the location is very crucial in hotel marketing. The place selected should be free from all health hazards. Location of the hotel is the most important business decision
for the hotel. Present in metro cities in India Global presence (Maldives,London,Dubai,Colombo)
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PROMOTION STRATEGY
Promotional schemes are carried on regularly the hotel has many loyalty programe,clubes,membership,previlage etc some of them are
1. The Taj Inner Circle.2. The Taj Junior League.3. The Taj Club.
Taj also offer Taj surprises including weekend savers,value vouchers,book early get more,
ADVERTISEMENT Business news paper(E.T, Financial Express, Bombay Times) T.V channels like STAR NEWS,CNN and CNBC. Magazines like THE OUT LOOK TRAVELAR,GO NOW and
TRAVEL.
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Promotion
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ADVERTISING
SALES PROMOTION
WORD OF MOUTH PROMOTION
PUBLICITY AND PUBLIC RELATIONS
PERSONAL SELLING
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People
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“First impression is the last impression”• Selection of suitable personnel and provision for their training and development are
very significant. • The staff in a hotel plays a major role in transforming the potential customers. To
actual guests: they should be able to live up to the expectations of their customers.• In the hotel industry customers minutely pay attention to the treatment they receive. • The offering of services requires complete personal involvement of the hotel
personnel in general and front-office staff in particular. The front office should be designed well and the concerned staff should render efficient and courteous services to the customers.
• There will be an attitudinal change in the minds of the prospective customers if the hotel personnel follow the established behavioral principles. For instance, even the best food served in a hotel will not satisfy the customers if the staff does not behave well
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People
• Skilled person• Professional person• Personal Agents• Technological person• Travel agents
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Physical Evidence
• Lobby- It being the first & the last part of the hotel that the guest sees,thus it should be well designed, also to ensure that the customer returns again the room should be comfortable and should
• have made his stay hassle free .• It addresses the ‘tangible’ components of the service experience
• The “services cape” includes the ambience, the background music, the comfort of seating and the physical layout of a service facility
• The appearance of the staff, including clothes and grooming, may be used as important clues
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Process
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It includes the flow and progress of the production process
E.g. the service of providing a meal at the fine dining restaurant of the hotel
Process Major service encounter that extremely delighted or
disappointed are:1. Check – in.2. Bell person carrying luggage to the room.3. Food.4. Wake up call5. Check out.
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STP analysis
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THE TAJ GROUP OF HOTELS SEGMENTATION
TAJ LUXURY HOTELS –
TAJ PALACE, TAJ MAHAL, TAJ BENGAL, TAJ WEST END
OFFER FINEST STANDARD OF
HOSPITALITY & SERVICE
TAJ BUSINESS HOTELS:
TAJ PRESIDENT, TAJ RESIDENCY,
TAJ CONNEMARA, TAJ BLUE DIAMOND
OFFER MULTI – CUISINE
RESTAURANTS & BEST BUSINESS
FASCILITIES
TAJ LEISURE HOTELS:
TAJ BEACH RESORT, TAJ CULTURAL
CENTRE, TAJ GARDEN RETREATS
LOCATED AT BEACH RESORTS,
PALACES, PILGRIM CENTRES ETC.
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THE TAJ GROUP OF HOTELSSEGMENTATION
TAJ LUXURY HOTELSTAJ PALACE,TAJ MAHAL,TAJ BENGAL,TAJ WEST END OFFER FINEST STANDARD OF HOSPITALITY & SERVICE
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TAJ LEISURE HOTELS
TAJ BEACHRESORT,TAJ CULTURAL CENTRE,TAJ GARDENRETREATS LOCATED AT BEACH RESORTS,PALACES,
PILGRIM CENTRES ETC.
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Positioning
• Through print media• Electronic media• Magazines• Online advertising
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Targeting
• Targeting is a group of people who have common need, and behavior.
• Business class• Upper class• Tourists
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COMPETITORSThe hotel has many competitors like 1. The Oberai towers2. The Marine Plaza3. The Orchid.4. Le MeridianAcqusition-hotel blue diamond pune.
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SERVICE ENCOUNTER
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Service Encounter CascadeCHECK IN
(Front desk Executive)
BELL BOY TAKES TO ROOM(Bell Boy)
RESTAURANT MEAL(Waiter)
REQUEST WAKE UP CALL(Tele phone Operator)
CHECK OUT(Font desk Executive)
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Stations Of Experience• Pre-Arrival
Reservations: During the reservation a preference sheet is mailed to capture the details and to enhance the stay experience.
Airport pick-up: An airport representative is sent along with a chauffeur holding a placard
• Arrival– Welcome at the lobby: Royal welcome by the guards in typical Rajasthani Attire.– Royal Welcome for Groups: Special arrangements for groups are made. A huge caravan
of Elephants, camels , horses along with a professional band is called for the reception of the group.
– ATG( Aarti, Tiki and Garlanding):– Welcome Drinks upon arrival
• Check-in– Escorting– Welcome Letter– Room Orientation
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• Experience during stay– Heritage walk– Special Occasion Celebration– City tour by vintage car– Cultural music and dance– Unique dinner experience– Grand Wedding– Other Facilities
Check Out– Feedback Form at time of Turn Down– Souvenir: A fragrant incense stick wrapped in a satin cloth is gifted to the
customers as a souvenir.
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ROLEPLAY
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CRM
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Benefits• Streamlined sales and marketing processes• Higher sales productivity• Added cross-selling and up-selling• Improved service, loyalty, and retention• Better profiling and targeting• Reduced expenses• Increased market share• Higher overall profitability
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CRM in Hospitality
• The secret here is that retention cost is very low when compared to the cost of attracting new customers
• nature and extent of the services and facilities • developing and designing services that suit customer
preferences• Quality of service and Customer Satisfaction are the most
important factors in the service organizations• CRM helps hotels to service their customers and be cost
effective• Major hotel chains have been wooing travellers for years with
CRM tools focused mainly on "loyalty" or rewards programs
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CRM Activities in Hotels
• Catering to Valuable Guests
• Better Customer Data Yields Benefits
• New Directions Online
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DIFFERENT REWARD PROGRAMMES OFFERED BY TAJ GROUP OF HOTELS TO ITS CUSTOMERS/GUESTS
• Taj Inner Circle• Taj Epicure Plan• Benefits That Customers Enjoy As A Silver & Gold Member
Customers will be greeted with flowers & fruits in their room
Check-in & departure formalities will be easier, faster & flexible
Receive special discount on rooms at Taj leisure hotels
Avail of double occupancy at no extra cost
Entitled to a priority wait-list
• Points Redemption• Taj Club
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CRM used in Taj Palace Hotel
• At the time of the reservation a preference sheet is sent across to the guest along with the reservation conformation mail
• This is primarily to capture the various preferences of the customer such as food habits (Diabetic/ Low fat etc.), special needs etc. It also asks if the customer is coming on a special occasion or not and arrangements are made accordingly made on the visit
• e.g. If the guest is coming on a honeymoon or anniversary the room is decorated accordingly, cake is placed in the room etc.
• This is another important tool in improving the service of the hotel and to capture guest complaints. If a complaint is registered by a customer it is updated on the software.
• Gradually as the time lapses the status displayed turn from green to yellow and ultimately red. This status can be seen by any of the managers as the software is connected to the central server. A daily Action Taken Report is generated which is signed by the operational head.
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1. Guest Preference Sheet 2. Handling Complaints
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• Fidelio is the property management system used by Indian Hotels Company Limited. Although it is used for various functions but it also plays an important role in the CRM processes of the hotel.
• It is used for saving the profile, preferences and special information (Anniversary, Birthday, allergies etc.) related to the guest on a central server.
• This information is accessible to all the Taj properties; therefore, whenever there is a repeat customer the hotel staff already has all the necessary information enabling them to delight the customer by personalized service.
• This is a special instrument used by personal butlers for recording guest preferences & other important information related to the guest.
• This is a small booklet which is carried by the staff at all times and whenever they get any information which can be useful in the future to please the customer, they simple record it here.
• This information is further uploaded on the PMS making it accessible to all.
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3. Fidelo 4. Wow Card
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• Once the guest is in the hotel and stayed for sometime (a day or two) a courtesy call is made by the guest relationship executive during the evening hours.
• This is just to know about the guest’s experience and how can it be improved in case there is some difficulty being faced by him/her.
• In case there is a complaint it is uploaded on the CRM software and further processes are followed as mentioned above.
• Post departure an automated mail from the central server is sent to the guest requesting to fill up a feedback form. There are various heads covering the various stations of experiences which are scored on a Likert Scale.
• This information is quantified to highlight the areas of concern. This score is also used as a measure of performance of a hotel unit.
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5. GRE Courtesy call6. GSTS (Guest Satisfaction Tracking system):
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SERVICE TRIANGLE
Internal Marketing Vertical Communications
Horizontal Communications
Interactive Marketing Personal Selling Customer Service
Center Service Encounters Servicescapes
External Marketing Communication Advertising Sales Promotion Public Relations Direct Marketing
Company
CustomersEmployees
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External Marketing-Advertisement
T.V channels like STAR NEWS,CNN and CNBC.Magazines like THE OUT LOOK TRAVELAR,GO NOW and TRAVEL.Business news paper(E.T, Financial Express, Bombay Times)
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Internal Marketing
• Taj Management Training Programme (TMTP)
• Hotel Operations Management Trainee (HOMT)
Program
• Taj Management Training Programme (TMTP) -
Operations/ Food Production
• Affiliation with Indian Institute of Hotel Management,
Aurangabad
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Interactive Marketing
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Customer Loyalty Programs ( Retention)
• Taj Inner Circle
• Taj Epicure Plan
• Benefits That Customers Enjoy As A Silver & Gold Member– Customers will be greeted with flowers & fruits in their room– Check-in & departure formalities will be easier, faster & flexible– Receive special discount on rooms at Taj leisure hotels– Avail of double occupancy at no extra cost– Entitled to a priority wait-list
• Points Redemption
• Taj Club
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Program for Employees
• Employee loyalty program called STARS, the 'Special Thanks and Recognition System‘ - was an initiative aimed at motivating employees through acknowledgements and rewards.
• The STAR system also led to global recognition when the group bagged the 'Hermes Award' for 'Best Innovation in Human Resources' in the global hospitality industry.
• Taj Group developed the 'Taj People Philosophy' (TPP) which helped the company boost the morale of its employees and improve service standards
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Reservations Booking Portal
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What Creates Customer Delight
24-hour room service
Free safe deposit lockers
Express laundry/ dry cleaning
Purified water supply
Doctor-on-call
Full-equipped Business Centre
24-hour fax/ telex facilities.
3 Meeting rooms
Laptops on hire
Currency Exchange
Travel assistance
Car hire service
24-hour Coffee Shop
6 Restaurants & Bars
Night Club
8 luxurious Banquet Rooms
Shopping arcade
Fitness Centre
Beauty shop
Arrangements made for golf and
tennis
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Customer Feedback System
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Room Feedback form: During the evening service/ Turn- down service a feedback form is placed on the bed to know about the customer experiences.
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Service recovery
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Consequences for a service organization
• Negative Consequences - Lost Customers - Negative word of mouth - Employee
Dissatisfaction - Lack of loyalty - Complaints - Exit from the
organization
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Entry in India
• Attackers travelled by sea from Karachi, Pakistan across the Arabian Sea.
• 10 Urdu-speaking men arrived.• The first events were detailed around 20:00
Indian Standard Time(IST) on 26 November.• 156 people lost their lives, 400 injured, 250
walked free
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Hotel Taj After 26/11
• Nearly 40% of annual income lost – Financial Crisis.
• 2007 – 16% Growth• 2008 – 1.8% growth compared to 2007.• Went down due to terrorism.
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CRISIS AT
TAJ
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THE CHRONOLOGYReasons behind 26/11 terror attacks.Flaws in the services.Disaster Recovery Planning.
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Reasons behind the 26/11 terror attacks
Filled with people - foreigners and the local elite. International media coverage.The message to India.The selection of targets—Americans, Britons, and Jews, as well as Indians.
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The Siege At Taj HeritageAt least seven gunmen enter the lobby of the Taj Mahal Palace hotel, where about 450 people were staying, and begin firing. 60 hours of siege.Left 195 people dead and hundreds injured. Large fire reported.Took Indian security forces nearly three days to eliminate the last of the attackers.
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SERVICE FLAWSIntelligence Failures.Gaps in Coastal Surveillance.Incomplete Execution of Response Protocols.Response Timing Problems.Inadequate Counterterrorism Training and Equipment for the Local Police.
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Limitations of Municipal Fire and Emergency Services.Flawed Hostage-Rescue Plan.Poor Strategic Communications and Information Management by the Govt.
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Employees of taj during THE SERVICE crisis
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Staff- Waiters, Executives, Chefs.Providing food and other necessary things to the guests as needed by them.Established a helpline in Wellington Mews in the midst of the crisis.Security staff.
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The telephone operators.Karamveer Singh Kang, Taj's general manager.Hotel management.Ratan tata - Chairman of the Tata group.
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Immeditely created the Taj Public Welfare Trust.Assisting people affected by the attack.Not laid off a single employee.Promised to rebuild and restore every inch of the hotel to its original glory.
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ReopeningRe-opened the doors of its 268-room Tower Wing on Sunday 21 December 2008.Guest services have been upgraded.Use of the Taj Club, with free breakfast and tea, coffee and cocktails. Free use the hotel's personal butler service.
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SECURITYInvestment of large sums of money on security systems and procedures. Created a security team headed by a retired Major General from the army. Retained the services of a top international security service company.Around 75 people have been trained overseas. Equipped them to be the first line of defence in the event of an attack.
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Trained security people in plain clothes at the lobby and other key points.Security ring outside the hotel. Mock attacks to assess the preparedness of our people, system and procedures.
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Maintaining hotel image
The hotel’s biggest loss was the death of 10 staff members and 21 guests.November - spent in quiet reflection and remembrance. Private multi-faith prayers.
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Service Recovery Strategy
Fail-safe your service – “Do it right the first
time”
Welcome & encourage complaints
Act quickly
Treat customers
fairly
Learn from recovery
experiences
Learn from lost customers
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BALANCE OF DEMAND AND CAPACITY
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Thank you